The books of Dahlia Products Company show the following account balanoes as of March 1: Finished Goods Work in ProcesS Materials P78,830 202,021 05,000 Over-or-underapplied Factory Overhead 12,300 (Cr.) The work in process account is supported by the following job order cost sheets. Job Item Direct Direct Factory OH P13,800 22,370 Total materials P15,230 40,450 80,875 P116,555 labor P21,430 55,240 43,860 P120,530 80,000 balloons P50,460 118,060 124,101 P55.630 P292,021 204 205 5.000 life rafts 200 10,000 life belts 19,300 During March, the following transactions occurred: a. Purchase materials, P42,300. b. Purchase of special materials was P5,800 for new Job 207, which calls for 4,000 life jackets. c. Indirect labor cost was P12,480. Direct labor was as follows: Job 204 205 Amount Hours P28,844 | 3.355.5 22,750 3,250.0 208 28,920 20,370 3.815.0 2,010.0 207 d. Materials issued: Job 204 Job 205 Job 200 P0.480 11.320 10,400 10.640 Job 207 • Excluding P5,800 of special materials, which are also issued at this time. e. Other factory overhead inourred or accrued. Insuranoe on factory Tax on real estate Depreciation - machinery Depreciation - factory building Light Coal used Power Repairs and Maintenance Indirect supplies Miscellaneous f. Factory overhead is applied at the rate of P2.30 per direct labor hour. An applied factory overhead account is used and is then closed to the overhead control acoount. g. Job 204 was shipped and billed at a contract price of P117,500. P830 845 780 840 500 1.810 3,300 2,240 1.010 15,256.87
The books of Dahlia Products Company show the following account balanoes as of March 1: Finished Goods Work in ProcesS Materials P78,830 202,021 05,000 Over-or-underapplied Factory Overhead 12,300 (Cr.) The work in process account is supported by the following job order cost sheets. Job Item Direct Direct Factory OH P13,800 22,370 Total materials P15,230 40,450 80,875 P116,555 labor P21,430 55,240 43,860 P120,530 80,000 balloons P50,460 118,060 124,101 P55.630 P292,021 204 205 5.000 life rafts 200 10,000 life belts 19,300 During March, the following transactions occurred: a. Purchase materials, P42,300. b. Purchase of special materials was P5,800 for new Job 207, which calls for 4,000 life jackets. c. Indirect labor cost was P12,480. Direct labor was as follows: Job 204 205 Amount Hours P28,844 | 3.355.5 22,750 3,250.0 208 28,920 20,370 3.815.0 2,010.0 207 d. Materials issued: Job 204 Job 205 Job 200 P0.480 11.320 10,400 10.640 Job 207 • Excluding P5,800 of special materials, which are also issued at this time. e. Other factory overhead inourred or accrued. Insuranoe on factory Tax on real estate Depreciation - machinery Depreciation - factory building Light Coal used Power Repairs and Maintenance Indirect supplies Miscellaneous f. Factory overhead is applied at the rate of P2.30 per direct labor hour. An applied factory overhead account is used and is then closed to the overhead control acoount. g. Job 204 was shipped and billed at a contract price of P117,500. P830 845 780 840 500 1.810 3,300 2,240 1.010 15,256.87
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Topic Video
Question
|
Kindly answer the following: 1. total cost of Job 204? |
| 2. total cost of Job 205? |
| 3. Total cost of Job 206? |
| 4. Total cost of Job 207? |
| 5. amount of over-or underapplied factory |
|
6. amount of work in process inventory on March 31? |
| 7. total cost of goods manufactured? |
Transcribed Image Text:The books of Dahlia Products Company show the following account balances as of March 1:
Finished Goods
Work in Process
Materials
Over-or-underapplied Factory
Overhead
P78,830
292,621
65,000
12,300
(Cr.)
The work in process account is supported by the following job order cost sheets.
Job
Item
Direct
Direct
Factory
Total
materials
labor
он
204
80,000 balloons
5.000 life rafts
10,000 life belts
P15,230
P21,430
55,240
43,860
P13,800
P50,460
118,060
124,101
205
40,450
60,875
22.370
19,300
208
P116,555
P120,530
P55,536 | P292,621
During March, the following transactions occurred:
a. Purchase materials, P42,300.
b. Purchase of special materials was P5,800 for new Job 207, which calls for 4,000 life jackets.
c. Indirect labor cost was P12,480. Direct labor was as follows:
Job
Amount Hours
P26,844 3,355.5
204
205
22,750
3,250.0
208
28,920
20,370
3.615.0
2.910.0
207
d. Materials issued:
Job 204
Job 205
Job 206
P9,480
11.320
10.490
Job 207
18,640*
• Excluding P5,800 of special materials, which are also issued at
this time.
Other factory overhead incurred or accrued.
Insurance on factory
Tax on real estate
Depreciation – machinery
Depreciation – factory
building
Light
Coal used
e.
P830
845
780
840
580
1.810
Power
3,390
Repairs and Maintenance
Indirect supplies
Miscellaneous
f. Factory overhead is spplied at the rate of P2.30 per direct labor hour. An applied factory overhead
2,240
1.910
15,256.87
account is used and is then closed to the overhead control account.
g. Job 204 was shipped and billed at a contract price of P117,500.
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